SINCE the pandemic period, Canada, like other western countries, has been witnessing a rocky economic and social dynamic that has affected the lives of ordinary Canadians in a profound way. A recent survey by the Financial Planning Institute of Canada shows Canadians worry more about money or income than their health and relationships. FP reports that despite a young Canadian with a stable career and a regular income, s/he experiences financial stress each month, wondering if s/he will be able to pay the bills. In general, house rent and the cost of living with the bare necessities are very expensive compared to the pre-pandemic period. Most people, young and old, rely heavily on credit cards for all expenses outside of rent to keep track of their spending and earn cash back. Pre-authorised credit card payment helps avoid lapses in paying bills on time and dealing with what the consequences of that might be, such as having water bills or heating turned off. Many fear getting destitute all of a sudden.
The survey, carried out in 2022, says money has become the top source of stress (38 per cent), far more worrisome than personal health (21 per cent), work (19 per cent) and relationships (18 per cent). Rising gas, grocery, and housing costs, along with interest rate hikes, all contribute to stress levels. And the consequences can be quite serious, with one in three people reporting that financial stress has led to anxiety, depression, and other mental health issues and challenges. A way to address this social ill that helps people manage stress is 鈥榝inancial therapy鈥�. The Financial Therapy Association says it 鈥榟elps people think, feel, communicate, and behave differently with money to improve well-being through evidence-based practices and interventions鈥�. For example, an affected person who took therapy says she learned that being more open about her money fears has enlightened her. In her own words, 鈥業 think that鈥檚 helped relieve a lot of financial stress because you realise everybody is worried about it.鈥� The expert therapist says that it is important to focus on what is within your control that you can fix. As an example, consider the frequency of eating out. Reducing the habit of eating breakfast or dinner out or buying coffee several times a day as a daily routine is a good starting point.
The expert therapists advise clients with financial stress to try not to think of it as 鈥榶our worth or that your success鈥� all rides on it. In stressful situations, it is important not to rush on cutting costs arbitrarily. They recommend that you take a pause and reflect on priorities and necessary costs before slashing expenditures. Therapists found that, in general, when people get panicky about money, they try to cut back everywhere instead of sitting down for a moment or two and figuring out how bad the problem really is.
My motivation for sensitising myself to this delicate personal problem stems from the fact that the financial stress has affected a very large number of immigrant Canadians, including those from Bangladesh. Young families and single adults who have come to Canada in the past 4-5 years on study programmes, as well as those who are immigrants, are caught up in this distressful situation.
In the past 5鈥�6 years, Canada has increased its immigration population by over a million and been struck by the pandemic. The country鈥檚 capacity to expand the economy and create new jobs was severely curtailed during this time frame. Housing demands have skyrocketed in the face of acute shortages. Health services are under severe pressure, with no likelihood of an early remedy. The social safety net helps but cannot cover all necessities, thus putting people in a financially stressful situation. Frustration among young adults has led to increased drug dependency as well.
Recently, the Canadian government has imposed restrictions on immigration, reduced college student enrollment, and hired temporary workers from abroad. It is therefore most advisable to stay informed about the likely risks one must confront when immigrating to Canada or even coming on self-paid study programmes. It is better to be safe than sorry.
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Humayun Kabir is a former senior official of the United Nations.
